< Attention > These contents are prepared for the convenience of investors who could not participate in the financial results meeting. The contents below are by way of a summary and are not word for word account. Additionally, the Company bases the estimates in this material on information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected.

The consolidated sales and profit of Ricoh Group increased year-on-year in the 1st half of the fiscal year ending March 2006 due to the steady growth of office solution business especially sales increase of color machines, MFPs and printers both in Japan and overseas. We also raised the sales forecast of the fiscal year ending March 2006. We expect the office solution business to continue to grow in the 2nd half. However we continue to spend for the integration and reorganization of bases in line with our 15th mid-term plan growth strategy. We therefore did not change the forecast for operating income, pre-tax profit and net income. For the third quarter and onward, we predict an exchange rate of 110.00 yen against the U.S. dollar and of 135.00 yen against the Euro. We decided to raise the half-year dividend to 12 yen per share. And we forecast a raise in dividend for the fiscal 2006 to 24 yen per share.

Why was the sales growth rate lower than expected in Europe and higher than expected in the Americas?

A1.

In Europe, the cause was a tough business environment due to hard competition. In the Americas, we have continued to be strong as a result of our sales promotion strategies, the impact of new products and recovering business conditions in Central America and Canada.

Q2.

In the first quarter, approximately 3 billion yen expense was front-loaded for integration and reorganization of bases. Was there any such front-loaded expense in the second quarter?

The profit forecast for the fiscal year ending March 2006 hasn't been changed in spite of forex effect and expense decrease. Does this mean business condition is still severe? If so, why haven't you revised the forecast downward?

A4.

We are sticking to our initial targets. It won't be easy but we haven't changed the forecast.

You seem not to reap the expected profit from the present weak yen. On the other hand, do you lose profits as a result of the strong yen?

A5.

Yes, the strong yen has an effect on our profits but we are able to cover the risk partially by decentralizing of production sites.

Q6.

On the forecast of fiscal year ending March 2006, the latest forecast of expense increase excluding forex impact and R&D came to 21.4 billion yen. It has been changed to 17.5 billion yen this time. What's the reasoning behind this?

A6.

Expense increase was forecasted in this fiscal year for the growth strategy of the 15th mid-term plan. However, we are trying to minimize the expenditure for each program. This is the reason for the lower forecast.

Expense of first half has increased compared to the forecast of the beginning of the fiscal year. So, you need to reduce the expense of the second half despite some front-loaded expenses from the first half. How will you achieve this reduction?

A7.

We expect to benefit from the effect of investment in efficiency such as system integration.

Q8.

According to the forecast, SG&A ratio will decrease in the fourth quarter. Will SG&A ratio continue to decrease into the next fiscal year?

Inventories have increased in the first half compared to the end of March 2005. Will you manage to decrease them in the near future?

A9.

Inventory turnover is improving, and preparation of new products release was one of the reasons for the inventories increase. So this is not a serious problem for us. We are eager to decrease inventories with even more intensive risk control than before.

How do you expand the high-end printing business that many competitors have been entered in these days?

A13.

We are expanding business for the downsizing of mainframe printing and print-on-demand with Ricoh Printing Systems Ltd. We have also launched new high-speed color products. Thus we continue to expand the business gradually.

Q14.

How do you see recent changes in the copier market?

A14.

The trend toward multifunction and colorization is getting bigger than before, and will continue for the next few years. Ordinary type products still exist in the market. Meanwhile the competition is heating up in several segments and regions.

How do you respond to the changing copier market? Do you think that Ricoh can recover the profitability of a few years ago?

A15.

We intend to increase our profits by expanding the solutions business to meet customer demand and offering one-stop-service. Since we have invested in R&D and human resources for that purpose, we believe that we can increase our profitability going forward.